In the above example, if the taxpayer itemizes deductions, they would offset the winnings with the losses. If a Massachusetts resident wins $5,000 at a casino, the taxpayer would report $5,000 of income for both federal and Massachusetts purposes, but what if the taxpayer also had $5,000 of gambling losses?įederal tax law allows taxpayers to deduct their gambling losses to the extent of any gambling winnings as an itemized deduction. In Massachusetts, gross income is defined as federal gross income as defined in the Internal Revenue Code as of January 1, 2005, with certain modifications. With the allowance of sports betting, you may be wondering how to report your losses on your taxes.įederal gross income includes winnings from all types of gambling, including lottery, slot parlor, casino and sports betting. Mobile betting will follow, possibly in time for March Madness. Initially, sports betting will be allowed in-person at Plainridge Park Casino in Plainville, MGM Springfield and Encore Boston Harbor in Everett.
It is expected that sports betting will be allowed in Massachusetts in the coming weeks. Sports Betting Coming Soon to Massachusetts – Can I Deduct My Sports Betting Losses?
